Wu Xiaolu, the reporting group of the two sessions of this newspaper

  On March 8, the Fifth Session of the Thirteenth National People's Congress held its second plenary session in the Great Hall of the People in Beijing to hear and review the work report of the Supreme People's Court and the Supreme People's Procuratorate (hereinafter referred to as the "two high reports").

  The representatives of the National People's Congress and the National People's Congress who were interviewed said that last year, the people's courts carried out pioneering and beneficial practices in the trial of securities cases, which greatly increased the cost of securities violations. The connection has strengthened the joint force of cracking down on crimes in the capital market.

It is suggested that the Supreme People's Court this year further clarify issues such as the determination of the constituent elements of civil compensation liability for false statements, and expect the Supreme People's Court and the Supreme People's Procuratorate (hereinafter referred to as the "two highs") to continue to severely punish illegal and criminal acts such as financial fraud, so as to better protect investment the legitimate rights and interests of the parties.

  Severely punish financial fraud in the capital market

  Kangmei Pharmaceutical case was "named"

  According to the "Two High Reports", in 2021, the people's courts will severely punish financial securities crimes in accordance with the law, and conclude 13,000 criminal cases such as market manipulation, insider trading, illegal fundraising, and money laundering.

Procuratorial organs actively participate in the prevention and resolution of financial risks.

Established a procuratorial office stationed in the China Securities Regulatory Commission, jointly with the Ministry of Public Security and the China Securities Regulatory Commission to punish securities violations and crimes, handled 19 major cases in a centralized manner, guided the prosecution of the Kangde Xin case and the Kangmei Pharmaceutical case, helped supervise the capital market in accordance with the law, and safeguard the legitimate rights and interests of investors .

The two high-level reports both talked about severely punishing securities violations.

  It is worth noting that the first special representative lawsuit, the Kangmei Pharmaceutical case, was "named".

In this case, Kangmei Pharmaceutical and related responsible persons were sentenced to compensate 52,000 investors with 2.459 billion yuan.

  "The judgment of the Kangmei Pharmaceutical case fully demonstrates the power of the special representative's litigation, greatly increases the cost of securities violations, and sounds the alarm for market players." Representative of the National People's Congress, senior partner of Beijing Jincheng Tongda Law Firm and Xi'an Fang Yan, director of the branch, said in an interview with a reporter from "Securities Daily" that more and more courts tend to use or refer to the "model case + parallel case" mechanism for securities disputes that are not covered by the representative litigation system. Selecting representative model cases to make judgments first, and then adjudicating or mediating parallel cases according to the facts and judgment standards determined by the model cases, the efficiency of dispute resolution is significantly improved.

These trial practices have far-reaching significance for promoting the deep reform and healthy development of my country's capital market and effectively safeguarding the legitimate rights and interests of investors.

  "The work report of the Supreme People's Court mentioned that 'the Shanghai Financial Court will further promote the specialization of financial trials, establish an annual release mechanism for legal risk prevention reports on financial disputes, and serve the construction of Shanghai's international financial center', which highlights the people's courts in handling securities cases. Highlights." Lv Hongbing, member of the National Committee of the Chinese People's Political Consultative Conference, chairman of the All-China Lawyers Association, and chief executive partner of Grandall Law Firm, said in an interview with the "Securities Daily" reporter that while handling financial disputes, the Shanghai Financial Court clarified through typical cases. The judicial concept of the people's court demonstrates the spirit of giving priority to risk prevention and judicial service to the market.

  "The Supreme People's Procuratorate established a procuratorial office stationed in the China Securities Regulatory Commission to jointly punish securities violations and crimes with the Ministry of Public Security and the China Securities Regulatory Commission. Supervise the capital market in accordance with the law and safeguard the legitimate rights and interests of investors." Lv Hongbing further stated.

  "The follow-up will punish fraud in the capital market and severely punish financial securities crimes." On March 8, Yu Maoyu, deputy director of the General Office of the Supreme People's Court and head of the drafting group of the Supreme People's Court's work report, said that last year, the people's courts actively used the rule of law. Prevent and resolve financial risks, and properly handle financial disputes involving supply chain finance, disposal of non-performing assets, bankruptcy of financial institutions, and private investment funds.

Properly try bankruptcy and reorganization cases of listed companies, fully protect the legitimate rights and interests of creditors, investors and listed companies, and maintain the stability of the securities market and society.

  third financial court

  Expected to be established this year

  For the work deployment in 2022, the Supreme People's Court's work report proposed to "strike down financial securities, tax evasion and other crimes in accordance with the law, and maintain the socialist market economic order."

The work report of the Supreme People's Procuratorate proposes to "severely punish financial crimes such as illegal fund-raising and money laundering, and effectively maintain financial security. Strengthen anti-monopoly, anti-profiteering, and anti-unfair competition justice, and support and guide the healthy development of capital regulations."

  Fang Yan said that last year, the establishment of the procuratorial office of the Supreme People's Procuratorate in the China Securities Regulatory Commission promoted the efficient connection between administrative law enforcement and criminal justice, and strengthened the joint efforts to crack down on securities violations.

It is expected that the Supreme People's Procuratorate, the Ministry of Public Security and the China Securities Regulatory Commission will continue to jointly carry out special law enforcement actions against securities violations and crimes this year, focusing on severe punishment of financial fraud, malicious market manipulation, insider trading and other illegal and criminal acts.

  In January this year, the Supreme People's Court revised the judicial interpretation of misrepresentation.

Fang Yan suggested that the Supreme People's Court could take relevant measures individually or jointly with the Supreme People's Procuratorate and the China Securities Regulatory Commission to better protect the legitimate rights and interests of investors.

  It is worth noting that at the 33rd meeting of the 13th National People's Congress Standing Committee held on February 27, Zhou Qiang, President of the Supreme People's Court, made the "Decision on the Establishment of the Chengdu-Chongqing Financial Court (Draft)". illustrate.

This means that my country will usher in the third financial court since the establishment of the Shanghai Financial Court and the Beijing Financial Court.

  "The establishment of the third financial court will help improve the professional level of financial trials in my country and further increase the cost of violations of laws and regulations in the capital market. In addition, the judicial interpretation of securities misrepresentation cancels the pre-procedure procedure, and it is expected that the number of misrepresentation civil lawsuits will increase significantly. At the same time, the addition of financial courts is also a manifestation of increased investor protection." Lv Hongbing said that he expects the "two highs" to play a more active role in maintaining financial order, safeguarding the legitimate rights and interests of market players, and ensuring high-quality development.

(Securities Daily)

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